Century Aluminum (CENX) shares soared 6.7% in the last trading session to close at $20.71. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2% gain over the past four weeks. Optimism over the Trump administration's move to double tariffs on aluminum imports to 50% for most countries is driving the stock higher. CENX is poised to benefit from higher domestic aluminum prices as a result of the tariffs, which would drive its revenues ...

Core Viewpoint - President Trump's decision to increase aluminum tariffs to 50 percent is aimed at bolstering domestic production and job creation in the U.S. aluminum industry [2][3]. Company Summary - Century Aluminum Company supports the increased tariffs, which will enhance the supply of critical metals for national security and promote investments in U.S. jobs [2]. - The company plans to construct the first new aluminum smelter in the U.S. in 50 years and aims to double its domestic production as a result of the supportive policies [2][3]. - Century Aluminum is the largest domestic producer of primary aluminum in the United States and operates production facilities in Iceland, the Netherlands, and Jamaica [4].

Core Viewpoint - Century Aluminum Company (CENX) reported earnings of 28 cents per share for Q1 2025, missing the Zacks Consensus Estimate of 53 cents, but showing improvement from a loss of 39 cents per share in the prior year [1] Group 1: Financial Performance - CENX's net sales reached $633.9 million, a 29.5% increase year over year, but fell short of the Zacks Consensus Estimate of $643.8 million [2] - Primary aluminum shipments were 168,672 tons, reflecting a decrease of approximately 3.4% year over year [2] - The company had cash and cash equivalents of $44.9 million at the end of the quarter, up 36.5% from the previous quarter [3] - Net cash provided by operating activities was $72.3 million for the quarter ended March 31, 2025 [3] Group 2: Future Outlook - For Q2 2025, CENX forecasts adjusted EBITDA to be in the range of $80 million to $90 million, influenced by increased Midwest regional premiums and lower energy costs, partially offset by planned major maintenance and seasonal labor expenses [4] Group 3: Stock Performance - Shares of Century Aluminum have increased by 0.6% over the past year, compared to the industry's growth of 10.2% [5] Group 4: Zacks Rank and Comparisons - CENX currently holds a Zacks Rank of 5 (Strong Sell), while competitors like Brenntag SE and Contango Ore, Inc. have better rankings [7]

Core Viewpoint - Century Aluminum reported quarterly earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.53 per share, representing a 47.17% earnings surprise [1] - The company posted revenues of $633.9 million for the quarter, missing the Zacks Consensus Estimate by 1.54%, but showing an increase from $489.5 million year-over-year [2] Financial Performance - The earnings report indicates a loss of $0.39 per share in the same quarter last year, highlighting a significant improvement in earnings [1] - Over the last four quarters, Century has surpassed consensus EPS estimates two times and topped revenue estimates twice [2] Stock Performance - Century shares have declined approximately 9.7% since the beginning of the year, compared to a 4.7% decline in the S&P 500 [3] - The current Zacks Rank for Century is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.97 on revenues of $660.1 million, and for the current fiscal year, it is $3.36 on revenues of $2.48 billion [7] - The Metal Products - Procurement and Fabrication industry is currently in the top 31% of Zacks industries, suggesting a favorable industry outlook [8]

Financial Performance - Century Aluminum's net sales for Q1 2025 increased by $3.0 million compared to Q4 2024, driven by realized LME and regional price premiums of $35.6 million and favorable volume and sales mix of $11.3 million, despite a decrease in third-party alumina sales of $44.5 million [158]. - For Q1 2025, net sales rose by $144.4 million compared to Q1 2024, primarily due to favorable realized LME and regional price premiums of $91.1 million and an increase in third-party alumina sales of $58.0 million, partially offset by unfavorable volume and sales mix of $4.7 million [159]. - Gross profit for Q1 2025 decreased by $5.7 million compared to Q4 2024, mainly due to unfavorable raw material price realization of $25.7 million and unfavorable power price realization of $22.2 million, partially offset by favorable realized LME and regional price premiums of $35.6 million [160]. - Gross profit increased by $44.1 million for Q1 2025 compared to Q1 2024, primarily due to favorable metal price realization of $63.5 million and favorable regional price realization of $27.6 million, offset by higher power price realization of $26.7 million and increased operating expenses of $20.3 million [161]. Pricing and Premiums - The average price of primary aluminum per tonne for Q1 2025 was $2,631, compared to $2,199 in Q1 2024, reflecting a significant increase driven by tariff changes [149]. - The Midwest Premium (MWP) for aluminum increased from $402 per tonne in Q1 2024 to $729 per tonne in Q1 2025, influenced by the increase in Section 232 tariff rate from 10% to 25% effective March 12, 2025 [148]. Acquisitions and Investments - Century Aluminum acquired a 55% interest in Jamalco, resulting in a bargain purchase gain of $245.9 million recognized in Q1 2024 [144]. - The company finalized a bargain purchase gain of $245.9 million related to the acquisition of General Alumina Holdings Limited for the three months ended March 31, 2024 [168]. - The company entered into a Cooperative Agreement with the U.S. Department of Energy for up to $500 million to build a new aluminum smelter, marking the first new U.S. primary aluminum smelter in 45 years [140]. - The company entered into a Cooperative Agreement with the DOE for up to $500 million in IRA funding to build a new U.S. primary aluminum smelter [188]. Production and Operational Challenges - Jamalco experienced a production loss of approximately 84,000 tonnes in 2023 due to equipment failure, impacting gross margin by approximately $30.4 million [145]. - The expected capacity demand costs for power at the Sebree plant are projected to increase from approximately $3.1 million for the twelve months ending May 31, 2025, to approximately $5.9 million for the twelve months ending May 31, 2026 [152]. Expenses and Cash Flow - Selling, general and administrative expenses decreased by $2.3 million for the three months ended March 31, 2025, compared to the previous quarter [163]. - Net gain on forward and derivative contracts - nonaffiliates decreased by $8.1 million for the three months ended March 31, 2025, compared to the previous quarter [165]. - Income tax expense increased to $1.6 million for the three months ended March 31, 2025, compared to $0.2 million for the previous quarter [169]. - Cash and cash equivalents were approximately $44.9 million as of March 31, 2025, an increase from $32.9 million at December 31, 2024 [177]. - Net cash provided by operating activities was $72.3 million for the three months ended March 31, 2025, compared to a net cash used of $14.8 million in the same period last year [178]. - Capital expenditures for the three months ended March 31, 2025, were $21.2 million, with total capital spending estimated at $70 to $80 million for the year [189]. - As of March 31, 2025, the company had a liquidity position of $339.1 million, including cash and cash equivalents and unused availability under revolving credit facilities [173]. - The company had $43.7 million remaining under its stock repurchase program as of March 31, 2025, with no repurchases made during the three months ended March 31, 2025 [185].

Financial Data and Key Metrics Changes - Century Aluminum generated $78 million of adjusted EBITDA in Q1 2025, a modest decrease from Q4 2024 primarily due to polar vortex-related weather conditions impacting energy prices and one-time alumina costs [20][24] - Net sales for the quarter were $634 million, reflecting a $3 million increase due to higher metal volume and all-in metal pricing, partially offset by lower third-party alumina sales [22] - Net income was reported at $30 million or $0.29 per share, with adjusted net income at $37 million or $0.36 per share [22] - Liquidity increased to $339 million, up nearly $100 million quarter over quarter, and net debt declined by $55 million to $442 million [24] Business Line Data and Key Metrics Changes - First quarter shipments rose slightly to nearly 169,000 tonnes, an increase of 1% sequentially, with all smelters operating at targeted utilization levels [21] - Jamalco produced its highest quarterly volume in Q1 since acquisition in 2023, while Grundartangi returned to full production levels in March [21][14] - Billet orders from Grundartangi were lower than anticipated in Q1 due to demand weakness in the European market, but a small uptick was noted as Q2 began [15] Market Data and Key Metrics Changes - Realized LME prices averaged $2,553 per ton in Q1, up $91 per ton from the prior quarter, while the Midwest premium averaged $6.00 per ton, up $165 per ton [25] - Global market is expected to face a deficit of approximately 400,000 tonnes in 2025 as China reaches its production cap, with global inventories at new lows of only 46 days [11] - U.S. shipments increased by 6.7% year over year in March as downstream customers shifted supply chains back to the U.S. [12] Company Strategy and Development Direction - The company is focused on achieving lower production costs through capital improvement programs, particularly at the Jamalco facility, which aims to return to nameplate capacity of close to 1,400,000 tonnes [17][21] - The new smelter project is expected to double the size of the existing U.S. aluminum industry, creating over 1,000 full-time jobs and 5,500 construction jobs [38] - Management emphasized the importance of the Section 232 tariffs in stabilizing the U.S. aluminum market and supporting domestic production [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for aluminum, particularly in the U.S., despite some weakness in Europe [62] - The company expects Q2 adjusted EBITDA in the range of $80 million to $90 million, with anticipated benefits from lagged pricing and reduced energy costs [30] - Management remains cautious about market volatility but believes that aluminum prices will continue to rise in the near to medium future [66] Other Important Information - The company is on track to complete a major capital improvement project at Jamalco by year-end, which will enhance self-sufficiency in power generation [17] - A one-time increase in maintenance spending of about $10 million is expected in Q2 due to planned maintenance at the Sebree facility [18] Q&A Session Summary Question: Confirmation on one-time OpEx cost in Q2 - Management confirmed that the incremental OpEx cost of $10 million to $15 million in Q2 is a one-time expense [40] Question: Clarification on alumina costs - Management explained that higher alumina costs were also one-time due to timing of vessel sales, with no expected benefits in Q2 [42] Question: Update on Jamalco operations and cost improvements - Management indicated that Jamalco is operating well and is expected to improve further with the introduction of a new steam generation turbine [54] Question: Expectations on aluminum market and inventory replenishment - Management projected that global inventories will continue to decrease, supporting higher aluminum prices in the future [66] Question: Key milestones for the new aluminum smelter project - Management highlighted that finalizing power arrangements and site selection are the next key milestones before significant capital expenditure begins [76]

Financial Data and Key Metrics Changes - Century Aluminum generated $78 million of adjusted EBITDA in Q1 2025, a modest decrease from Q4 2024 primarily due to polar vortex-related weather conditions impacting energy prices and one-time alumina costs [21][22] - Net sales for the quarter were $634 million, reflecting a $3 million increase due to higher metal volume and all-in metal pricing, partially offset by lower third-party alumina sales [23] - Net income was reported at $30 million or $0.29 per share, with adjusted net income at $37 million or $0.36 per share [23][24] - Liquidity increased to $339 million, up nearly $100 million quarter over quarter, and net debt declined by $55 million to $442 million [25] Business Line Data and Key Metrics Changes - First quarter shipments rose slightly to nearly 169,000 tonnes, an increase of 1% sequentially, with all smelters operating at targeted utilization levels by quarter end [22] - Jamalco produced its highest quarterly volume in Q1 since acquisition in 2023, while Grundartangi returned to full production levels in March [22][14] - Billet orders from Grundartangi were lower than anticipated in Q1 due to demand weakness in the European market, but a small uptick was noted entering Q2 [16] Market Data and Key Metrics Changes - Realized LME prices averaged $2,553 per ton in Q1, up $91 per ton from the prior quarter, while the Midwest premium averaged $6.00 per ton, up $165 per ton [26] - Global market is expected to face a deficit of approximately 400,000 tonnes in 2025 as China reaches its production cap [10] - U.S. energy prices have eased since the polar vortex conditions in Q1, with Midwest Indiana hub prices down approximately 15% compared to the last quarter [31] Company Strategy and Development Direction - The company is focused on achieving lower production costs through capital improvement programs, particularly at the Jamalco facility [22][18] - Century Aluminum is committed to building a new smelter project, which will be the first new smelter built in the U.S. in fifty years, aiming to double the size of the existing U.S. industry [37] - The company is actively working to secure supply chains in response to recent tariff implementations, aiming to mitigate cost increases [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for aluminum, particularly in the U.S., as customers are nearshoring their supply chains [61] - The company anticipates continued support for higher aluminum prices due to low global inventories and ongoing demand growth [11] - Management remains cautious about market volatility but expects a small deficit in the aluminum market this year, with prices likely to rise in the near to medium future [62][65] Other Important Information - The company plans to complete a major capital improvement program at Jamalco by year-end, which will enhance power generation and lower production costs [18] - A one-time increase in maintenance spending of about $10 million is expected in Q2 due to planned outages at the Sebree facility [20] Q&A Session Summary Question: Confirmation on the one-time OpEx cost of $10 million to $15 million in Q2 - Management confirmed that this cost is indeed one-time and should reverse in Q3 [40][41] Question: Clarification on alumina costs being one-time - Management explained that the higher alumina costs were related to timing of vessel sales, with a high-priced vessel sold in Q1 and lower prices expected in Q2 [42] Question: Update on manufacturing credit receivable - Management expects to receive about $60 million of the FY '23 amount in Q2, with the remaining $20 million expected later this year or early next year [44][45] Question: Confirmation on debt reduction as a priority for excess cash - Management confirmed that reducing debt remains the top use of excess cash while continuing existing CapEx programs [50] Question: Update on operations at Jamalco - Management reported that Jamalco is operating well, with plans to introduce a steam generation turbine by year-end to reduce third-party power purchases [53] Question: Expectations on aluminum market and inventory replenishment - Management indicated that they do not foresee a replenishment of inventories and expect aluminum prices to continue rising [65] Question: Key milestones for the new aluminum smelter project - Management highlighted that finalizing power arrangements and site selection are the next key milestones, with significant CapEx expected in 2026 [74]

Financial Performance & Liquidity - Century Aluminum reported Q1 2025 Adjusted EBITDA of $78 million, compared to $81 million in Q4 2024[9] - Net debt decreased to $442 million in Q1 2025 from $497 million in Q4 2024[9, 31] - The company has robust liquidity of $339 million, including $45 million in cash and $294 million in credit facility availability[9, 31] - Q1 2025 net income was $30 million, or $0.29 earnings per share, compared to $45 million, or $0.44 earnings per share in Q4 2024[31] - Q2 2025 Adjusted EBITDA is projected to be between $80 million and $90 million[37] Operational Highlights - Shipments increased slightly from 166,677 tonnes in Q4 2024 to 168,672 tonnes in Q1 2025[31] - Jamalco refinery achieved its highest quarterly production volume since acquisition, with a continued focus on cost improvements[9] - Grundartangi returned to full production levels in March following a minor power curtailment[9] - Mt Holly experienced emergency energy charges due to a polar vortex impact in South Carolina[9] Market Conditions & Outlook - Global aluminum inventory levels have fallen to only 46 days of consumption[9] - Energy prices increased in Q1 2025 due to the polar vortex in the U S, but Q2 Indy Hub prices are approximately 15% lower quarter-to-date[9] - The company expects to realize a higher Midwest Premium (MWP) moving forward, partially benefiting from the increased Section 232 tariff in Q1[9]

[Century Aluminum Company First Quarter 2025 Results](index=1&type=section&id=Century%20Aluminum%20Company%20Reports%20First%20Quarter%202025%20Results) [First Quarter 2025 Financial and Business Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20and%20Business%20Highlights) In Q1 2025, Century Aluminum's net sales increased slightly by $3.0 million sequentially to $633.9 million, driven by higher aluminum prices and premiums, while net income and Adjusted EBITDA decreased due to higher input and energy costs Q1 2025 vs Q4 2024 Financial Results | $ million (except shipments and per share data) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Aluminum shipments (tonnes) | 168,672 | 166,677 | | Net sales | $633.9 | $630.9 | | Net income attributable to Century stockholders | $29.7 | $45.2 | | Diluted earnings per share | $0.29 | $0.44 | | Adjusted net income | $36.6 | $43.5 | | Adjusted earnings per share | $0.36 | $0.42 | | Adjusted EBITDA | $78.0 | $80.9 | - Net sales increased by **$3.0 million** sequentially, driven by higher LME aluminum prices, regional premiums, and favorable volume, partially offset by lower third-party alumina sales[4](index=4&type=chunk) - Net income decreased by **$15.5 million** sequentially to **$29.7 million**, primarily due to higher input costs and losses on derivative instruments, with Adjusted net income at **$36.6 million**, a **$6.9 million** sequential decrease[5](index=5&type=chunk) - Adjusted EBITDA decreased by **$2.9 million** from the prior quarter to **$78.0 million**, mainly due to higher energy and raw material costs, partially offset by improved LME and regional price premiums[6](index=6&type=chunk) - Key operational achievements include a **38% increase** in the realized Midwest premium, a new five-year labor contract for the Grundartangi smelter, and an extension of the power purchase agreement in Iceland through Q1 2032[7](index=7&type=chunk) [Second Quarter 2025 Outlook](index=2&type=section&id=Second%20Quarter%202025%20Outlook) The company anticipates an improvement in financial performance for the second quarter of 2025, with Adjusted EBITDA expected to be in the range of $80 to $90 million - The company expects second quarter Adjusted EBITDA to range between **$80 million to $90 million**[8](index=8&type=chunk) - The expected increase in Adjusted EBITDA is driven by higher Midwest regional premiums and lower energy costs, partially offset by planned major maintenance and seasonal labor expenses[8](index=8&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 2025, including the Statements of Operations, Balance Sheets, and Cash Flows, detailing the company's financial performance, position, and cash movements [Consolidated Statements of Operations](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q1 2025, the company reported total net sales of $633.9 million and a gross profit of $60.6 million, resulting in a net income attributable to Century stockholders of $29.7 million, or $0.29 per diluted share Q1 2025 Statement of Operations (in millions) | | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Total net sales | $633.9 | $630.9 | | Gross profit | $60.6 | $66.3 | | Operating income | $46.1 | $49.3 | | Net income attributable to Century stockholders | $29.7 | $45.2 | | Diluted EPS | $0.29 | $0.44 | [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, Century Aluminum's total assets stood at $1,954.5 million, with total equity increasing to $690.7 million and cash and cash equivalents rising to $44.9 million Balance Sheet Highlights (in millions) | | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $44.9 | $32.9 | | Total current assets | $821.9 | $802.8 | | Total assets | $1,954.5 | $1,939.4 | | Total current liabilities | $447.4 | $463.7 | | Total equity | $690.7 | $662.7 | [Consolidated Statements of Cash Flows](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, the company generated $72.3 million in net cash from operating activities, a significant turnaround from a $14.8 million use of cash in Q1 2024, ending the quarter with a $12.0 million increase in total cash Cash Flow Summary (in millions) | | Three months ended Mar 31, 2025 | Three months ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $72.3 | $(14.8) | | Net cash used in investing activities | $(15.5) | $(29.7) | | Net cash (used in) provided by financing activities | $(44.8) | $49.2 | | Change in cash, cash equivalents and restricted cash | $12.0 | $4.7 | [Selected Operating Data](index=7&type=section&id=SELECTED%20OPERATING%20DATA) Total primary aluminum shipments increased by 1% sequentially to 168,672 tonnes in Q1 2025, with an increase from United States operations and a slight decrease from Iceland Primary Aluminum Shipments (Tonnes) | | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | United States | 94,601 | 89,613 | 97,602 | | Iceland | 74,071 | 77,064 | 77,025 | | **Total** | **168,672** | **166,677** | **174,627** | [Reconciliation of Non-GAAP Financial Measures](index=8&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20FINANCIAL%20MEASURES) This section provides a detailed reconciliation from GAAP to non-GAAP financial measures, adjusting net income to $36.6 million and calculating Adjusted EBITDA at $78.0 million for Q1 2025 Reconciliation to Adjusted Net Income (in millions) | | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net income attributable to Century stockholders (GAAP) | $29.7 | $45.2 | | Unrealized loss (gain) on derivative contracts, net of tax | $3.0 | $(5.8) | | Mt. Holly emergency energy charges | $3.5 | $— | | **Adjusted net income attributable to Century stockholders (Non-GAAP)** | **$36.6** | **$43.5** | Reconciliation to Adjusted EBITDA (in millions) | | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net income attributable to Century stockholders (GAAP) | $29.7 | $45.2 | | Adjustments (Interest, Tax, D&A, etc.) | $48.3 | $35.7 | | **Adjusted EBITDA attributable to Century stockholders (Non-GAAP)** | **$78.0** | **$80.9** | [Legal Disclosures](index=2&type=section&id=Legal%20Disclosures) This section contains important legal information, explaining the company's rationale for using non-GAAP financial measures and providing a cautionary statement about forward-looking statements and associated risks - The company uses non-GAAP measures like adjusted net income and adjusted EBITDA to facilitate period-to-period comparisons by excluding items management believes are not indicative of ongoing operating performance[10](index=10&type=chunk) - The report contains forward-looking statements concerning future events and performance, which are based on current expectations but are subject to significant risks and uncertainties[11](index=11&type=chunk)[13](index=13&type=chunk) - Key risk factors include global economic conditions, aluminum and raw material prices, power availability and costs, geopolitical events like the wars in Ukraine and the Middle East, and the impact of trade actions like Section 232 tariffs[11](index=11&type=chunk)

Core Insights - Century Aluminum Company reported a net income attributable to stockholders of $29.7 million for Q1 2025, a decrease of $15.5 million from Q4 2024, primarily due to higher input costs and losses on derivative instruments [4][8] - Adjusted net income for the same period was $36.6 million, down $6.9 million sequentially, influenced by exceptional items including emergency energy charges and unrealized losses on derivatives [4][8] - The company expects Q2 2025 Adjusted EBITDA to range between $80 to $90 million, driven by increased regional premiums and lower energy costs [6] Financial Performance - Net sales for Q1 2025 were $633.9 million, an increase of $3.0 million from Q4 2024, attributed to higher LME aluminum prices and favorable volume and mix [3][8] - Aluminum shipments increased by 1% sequentially to 168,672 tonnes [8] - Adjusted EBITDA for Q1 2025 was $78.0 million, a decrease of $2.9 million from the previous quarter, mainly due to higher energy prices and raw material costs [5][8] Operational Highlights - The Midwest premium realized was $602, reflecting a 38% increase from the prior quarter [8] - The company recorded a positive impact of $16.2 million from the increase in Section 232 aluminum tariffs to 25% [8] - Century Aluminum's liquidity position as of March 31, 2025, was $339.1 million, consisting of cash and cash equivalents of $44.9 million and $294.2 million in borrowing availability [5][8] Strategic Developments - A new five-year labor contract was approved for the Grundartangi smelter [8] - The power purchase agreement with ON Power, the largest power provider in Iceland, was extended through Q1 2032 [8]